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2012 (10) TMI 87 - AT - Income TaxAddition on account of unaccounted sales During survey u/s 133A - Out of books sales was detected - Assessee admit during survey unaccounted income - Held that:- Undisclosed sales represented the gross sales & gross sales cannot be subjected to tax. As the statement recorded u/s. 133A has no evidentiary value and same cannot be sole basis of addition. Therefore sales after deducting profit element are subject to addition. Appeal decide in favour of assessee Addition on account of suppression of stock During survey u/s 133A AO found difference in stock as per the books of account and in the trading accounts - Assessee claims that the some quantity of gold out of stock was received on jangad (delivery for sale on approval) basis for sale - Held that:- As the statement accepted the fact that certain gold ornaments were sent to the assessee firm on Jangad basis for sale was submit by the authorized signatory. Therefore to the extent of gold ornaments received by the assessee on Jangad basis is deleted from addition. Appeal partly allowed. Disallowance of unexplained expenditure u/s 69C Assessee is in jewelry business AO made addition because assessee failed to explain labour expense - Assessee has submitted the wage register in which laborers put their signature Held that:- Merely production of the wage register is not sufficient. Assessee failed to corroborate from other evidences as what kind of work was got done and also it was not acceptable that nobody would in for precious metal as gold to any person whose permanent address is not known. Therefore appeal decides in favour of revenue.
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